The governments of Canada, Ontario and Toronto announced a $1.185 billion cleanup of the city’s port lands, that will eventually protect up to 240 hectares of space, a move designed to safeguard southeastern portions of downtown Toronto from flooding and also unlock potential development in the area.

The investment includes up to $384 million from the federal government and $400 million each from the provincial government and the city of Toronto. Last year, all three governments announced $65 million in infrastructure funding under the Clean Water and Wastewater Fund a local Toronto project, which is included in the $1.25 billion figure announced Wednesday.

“There are two big reasons to make these investments, the first is to protect these lands and area from flooding. Flooding happens and it is happening more regularly and its effects can be felt across the whole city,” Prime Minister Justin Trudeau said at a press conference. “We need to take steps now to ensure that the land we are gathering in can be safely used and enjoyed for years to come.”

He said the second reason was the economic benefits of cleaner and better protected port lands. “As many as 1,500 jobs will be created in the cleanup and development phases,” said the prime minister, adding 80,000 jobs could be created in port lands and the east harbour on completion of the project.

He said 12 million square feet of new commercial development space will be added to Toronto’s downtown once the project is completed. The area is expected to accommodate housing for as many as 30,000 people, 20 per cent of residential units set aside for affordable housing.

The project, which will take about seven years to complete and result in 1.5 million cubic metres of excavated soil, will impact the Don River on the eastern end of Toronto’s waterfront.

Waterfront Toronto, a public development corporation created in 2001 by the three levels of government to lead a revitalization of Toronto’s waterfront, says The Port Lands Flood Protection Project will create “two new outlets for the Don River – including a wide river valley – that will safely convey flood waters into Lake Ontario, as well as provide new parks, aquatic habitat and infrastructure such as roads, bridges and a transit right-of-way.”

Toronto Mayor John Tory described his city as the economic engine of the country and said it’s easy to see why three levels of government were able to come together on the remediation project. “This large piece of our waterfront is the largest undeveloped piece of land in a North American city,” said Tory.